NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Trafalgar Energy Ltd. ("Trafalgar")(TSX:TFL) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Sprott Securities Inc. and Canaccord Adams, pursuant to which the underwriters have agreed to purchase 497,600 common shares on a "bought deal" private placement basis ("Common Shares") at an issue price of $4.02 per Common Share and 792,100 Common Shares issued on a "flow through" basis ("Flow-Through Shares") at an issue price of $5.05 per Flow-Through Share for gross proceeds to Trafalgar of approximately $6.0 million (the "Offering").

Trafalgar has also granted the underwriters an option (the "Underwriters' Option") to buy up to an additional 49,760 Common Shares for additional gross proceeds of approximately $200,000.

Proceeds of the Offering will be used to fund Trafalgar's exploration and development program and for working capital purposes. Trafalgar will agree to incur Canadian Exploration Expenses in the amount of the proceeds raised through the issuance of Flow-Through Shares (being $4 million) to be renounced to the subscribers for the Flow-Through Shares effective on or before December 31, 2006.

The Offering is scheduled to close on or about December 14, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.